Although the title of this article might seem a bit weird as it’s the last thing anyone wants to do but nevertheless many people are already doing this successfully on an annual basis.
It would prove to be both humorous and enlightening to a look at some of this common endeavors that the common taxpayers take upon themselves every year. One of the most common mistakes that taxpayers make are when it comes to payments.
Paying more by paying less
Well, you have 2 sets of people here.
First is those who ignore to pay their final tax that is due by 30th April or 30th June. What happens then is that the IRB would automatically impose the 10% penalty on their taxes. Nothing much can I say about these groups of people except to please wake up!
Next you have the individuals who will swear upon their mother’s grave that the IRB owes them money and in view of this they take upon themselves to ‘contra’ off this amount and ignore the payments due.
What you must understand is the payments are due on the last due date of filing regardless of the circumstances.
If truly you do have a credit with the IRB, visit your branch and request for confirmation of this credit.
Then apply with the IRB’s collection unit to utilise this credit against your tax payable and collect the confirmation letter from the IRB.
Paying more when you don’t need to pay anything
Individuals who have a OG number or have a business source of income would receive a notice of installment payment that is due bi-monthly starting from March every year. Some taxpayers who know in advance that their business would be making a loss and that there’s no tax obligation that year tend to skip paying the installments.
Well what they see as right would be seen as non-payment by IRB and each installment would be attracting a penalty. Nice way to pay tax for a year without tax huh?
So the next time someone tells you, “Haiya, no need to pay one lah……” Think twice.
| Yearly income (2.5 x 12 ) | 30,000 |
| Less : Self relief | ( 8,000) |
| EPF ( estimate 11% of 30K) | ( 3,300) |
| Taxable Income | 18,700 |
| Tax on First 10,000 | RM 175 |
| Balance 8,700 @ 3% | RM 261 |
| Total tax | RM 436 |
| Less : Rebate (taxable income below 35K) | RM (350) |
| Net Tax Charged | RM 86 |
Having a form hand-written could be a beautiful sight in the age of computers provided your penmanship is up to mark. Even for those who LOVE to take their pen and fill up forms (Are there such a person? ) , they would stagger looking at an official form. Everyone knows when handling numbers, something small could lead to something BIG that bites you at the end.
One slip with an item like “How do you wish to declare you returns?” might end you up with forking out an extra RM 300. We obviously don’t want that but face it, people do screw up. That’s where something like TAXSAYA excels.
Isikan: - -
(i) ‘1’ jika isteri memilih taksiran bersama dan taksiran dikeluarkan atas nama suami. Isteri tidak perlu mengisi ruang C17 dan C18, Bahagian D, Bahagian E dan Bahagian F Borang BE; atau
(ii) ‘2’ jika suami memilih taksiran bersama dan taksiran dikeluarkan atas nama isteri. Suami tidak perlu mengisi ruang C17 dan C18, Bahagian D, Bahagian E dan Bahagian F Borang BE; atau
(iii) ‘3’ jika memilih taksiran berasingan; atau
(iv) ‘4’ jika status individu adalah bujang/janda/duda/simati; atau suami / isteri tiada punca pendapatan atau pendapatan dikecualikan cukai.
Nota: Syarat untuk memilih taksiran bersama:
(i) suami dan isteri tinggal bersama dalam tahun asas dan tidak berhenti tinggal bersama dalam tahun asas tersebut;
(ii) mempunyai jumlah pendapatan untuk diagregatkan dengan jumlah pendapatan suami / isteri;
(iii) adalah warganegara Malaysia jika tidak bermastautin;
(iv) pengagregatan hanya boleh dibuat dengan seorang isteri sahaja
CONTINUE HERE
IN TAXSAYA. Your options are
(i)Assessed under self
Note, Taxsaya don’t make distinction whether it’s under the husband or wife. It only asks if it's under you or your spouse. Also it does not even give you this option if you are single.
In addition to all this, all the linking that was talked about in that excerpt above disappears..... "Wonder if I can make my tax disappear too?" wishful thinking...
